§ Mr. Robin F. Cookasked the Secretary of State for Scotland what were the figures which he included in his advice to local authorities in the course of the rate support grant negotiations as the likely rate of inflation for the years 1975–76 and 1976–77; what was the actual rate of inflation in 1975–76; and what is his current estimate of the rate of inflation in 1976–77.
§ Mr. MillanNo such advice was given to local authorities for 1975–76. The relevant expenditure assumed in the original grant determination for that year was augmented by 22.8 per cent. in successive increase orders.
Local authorities were advised in December 1975 that the cash limit to be applied to the rate support grant for 1976–77 was based on increases in local authority expenditure, excluding loan charges, of about 7 per cent. over the period from November 1975 to March 1977; and it was suggested to local authorities that they should proceed on a similar basis in the preparation of their budgets. The group of officials which advices the Convention of Scottish Local Authorities and myself on these matters 270W has estimated that the increase in relevant expenditure over the figure assumed in the main settlement for 1976–77 may amount to 8.3 per cent.